Automotive

Industry

IndustryInsights

SUMMER2025

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IndustryHighlights

Overview

Globally,2024markedayearofslowgrowthfortheautomotiveindustry,asvolumesonlygrew1.7%to88.1millionunits.2025isexpectedtobeanotheryearofsluggishgrowth,withonlya1.6%forecastedincreaseinsalesvolumes.Salesareexpectedtobenegativelyimpactedbyweakercustomerdemand,mixedeconomicconditionsandpoliticalriskmarkedbyanuncertaintariffenvironment.1

In2024,U.S.autosalesgrew1.9%yearoveryear(YoY),withstrongsalesinthelastthreemonthsoftheyear.2For2025,salesareforecasttodropto15.4millionunitsasdemandsoftensandtariffimpactsincreasethecostofvehicles.3Electricvehicles(EVs)continuetogainmarketshareintheU.S.butgrewonly10%in2024comparedto40%in2023.Batteryelectricvehicles(BEVs)andplug-inhybridelectricvehicles(PHEVs)nowaccountfor10%ofnewcarsales.4

Chineseautosalesroseto31.4millionunitsin2024,up4.6%from2023.5Saleswereespeciallystronginthebackhalfof2024andthestartof2025ascertaingovernmentsubsidyprogramsandsalestaxexemptionsbuoyedconsumerdemand.6TheEVmarketinChinacontinuestoaccelerate.HelpedbytherecentgrowthofPHEVsales,nearlyhalfofallnewcarssoldinChinain2024wereelectric.7

InEurope,vehiclesalesin2024increased0.9%comparedto2023.8Growthslowedduetolowerdemand,politicaluncertainty,andtheendingofcertainEVsubsidiesinmajorEuropeanmarkets.1Mutedsalesresultscontinuedinto2025,assalesforthefirstquarteraredown0.4%YoY.9AlthoughBEVshavelostsomemarketshare,anincreaseinhybridsaleshasdriventhemarketshareofallEVsover50%for2024.8

M&Aactivityintheautomotivesectorcontinueditsdeclinethroughtheendof2024andinto202510duetouncertaineconomicandgeopoliticaldynamics.11Seventy-seventransactionsclosedinthefirstquarterof2025,down46%fromthefirstquarterof2024,representingthelowestquarterlytotalinover10years.10

.

PubliccompanyequityperformanceinselectedautomotiveindexeswasmixedthroughApril2025,withtheAutomotiveMobility,AutomotiveAftermarketPartsandRepairandAutomotiveSuppliersindicesinpositiveterritoryTheAutomotiveDealers,AutomotiveOriginalEquipmentManufacturers(OEMs),and

EVindicesendedtheperiodinthenegative.10

2

ExecutiveSummary

GlobalLightVehicleSalesGrowthSlowedin2024andinto20251

GlobalAutoSalesExpectedtoGrow

Modestlyin2025,HamperedbyTariffs1

TariffImpacts:U.S.VehicleSalesEstimatesLoweredby850Kfor20253

TariffImpacts:U.S.VehiclePricesEstimatedtoIncreaseby$2Kto$10K3,18

AutomotiveM&AActivityRemainsWeakin202510

3

GlobalAutoSalesTrends

GlobalVehicleSales

Globalvehiclesalesslowedin2024afterastrongreboundin2023.Salesgrew1.7%to88.1million,butvolumesarestillbelowpre-COVID-19levels.TheChinesemarketgrewover4%asincentivesandtaxexemptionsdrovestrongersalesinthesecondhalfoftheyear.TheU.S.marketgrewmodestlyat2%,whileEuropehadthelowest

growthamongthetopthreeautomarketsin2024,growingatonly1%.1

EVadoptioncontinuestodifferbyregion.In2024,over20%ofnewcarssoldgloballywereBEVsorPHEVs.1Chinacontinuestodominatethespace,withEVsalesmakingupnearlyhalfofallnewcars.7InEurope,over22%ofnewcarsareBEVsorPHEVs.9TheU.S.lagstheothertwomajormarketsatonly10%electricmarketshare.4For2025,itisexpectedthatoneinfourcarssoldgloballywillbeanEV.1

Toyotaremainedtheglobaltop-sellingbrandin2024,witha10.7%marketshare,thesameas2023.Volkswagenremainedinsecondplace.BYDjumpedintothirdplacein2024,upfromninthin2023.BYDhadthestrongestsalesgrowthofthetopbrands,increasinganastounding42%in2024.12

Globally,vehiclesalesareprojectedtoincreasejust1.6%in2025to89.5millionunits.Salesareexpectedtobehamperedbyglobalpoliticalandeconomicuncertainty,especiallywithregardtotariffs.DemandisexpectedtobesofterintheU.S.andEuropeevenwiththepositiveimpactsoflowerinterestratesandnewmodelactivity.1,6

Brand

BestsellingVehicle

Brand%of2024MarketShare

2023

Rank

AnnualGlobalVehicleSales

15%

100.0

95.394.3

90.2

86.6

88.189.5

10%

77.880.779.5

80.0

UnitsinMillions

5%

Growth

60.0

0%

40.0

-5%

20.0

-10%

-15%

0.0

201720182019202020212022202320242025F

UnitsGrowth

Sources:

“Globalcarmarketintheslowlane:ChinasoarsaheadoftheWestinelectrification,”ING,January22,2025.

2024GlobalBestsellingBrands

1.

ToyotaCorolla

10.7%

1

2.

VolkswagenTiguan

5.8%

2

3.

BYDSONG

4.5%

9

4.

HondaCR-V

4.4%

3

5.

FordF-Series

4.3%

5

4

Sources:

“WorldBestSellingCarRanking2024.TeslaModelYKeepstheLeadershipforaBreath,”Focus2Move,January30,2025.

“WorldBestSellingCar2024.TheTop25BrandsRanking,”Focus2Move,January29,2025.

Alltrademarks,tradenames,orlogosreferencedhereinarethepropertyoftheirrespectiveowners.

GlobalTariffImpacts

May12,2025:TheU.S.

andChinacametoa

temporarydealontariffs

betweenthem.TheU.S.

temporarilyreducedits

tariffsonChinesegoodsto30%,insteadofthe

proposed145%.Chinadecreaseditstariffson

U.S.goodsfrom125%downto10%.

April9–April11,2025:TheU.S.

imposeda125%tariffonChinaaftertheydidnotlifttheirretaliatorytariffsonU.S.importedgoods.

Simultaneously,theU.S.announceda90-daypauseoftariffsonother

countries.Thenextday,China

imposedan84%tariffonallU.S.

goodsandtheEUpausedits

retaliatorytariffsontheU.S.for90

days.OnApril11,ChinaraisedtariffsagainonU.S.goodsto125%.

April1–April3,2025:OnApril1,

2025,theEUplannedtoimplementretaliatorytariffsof25%onalistofU.S.products.Twodayslateron

“LiberationDay,”theU.S.

announceda25%tariffonall

importedautomobiles.Thisappliedtolight-dutyvehiclesandtrucks,

butnotmediumorheavy-dutytrucks.

April29,2025:TheU..S

governmentoffered

temporaryreliefto

automakersfromthe25%

tariffimposedonMarch3.Itprovidedautomakersatwo-yeartimeframetomove

productionbackintotheU.S.

January20,2025:DonaldTrumpwasswornintoofficeandbecamethenewpresidentoftheUnitedStates

(POTUS).Inhisinauguraladdress

POTUSpromisedto“tariffandtax

foreigncountriestoenrichourcitizens”andreiteratedhisstanceonincreasing

globaltariffs.

GlobalTariffTimeline–KeyDatesImpactingtheAutomotiveIndustry

March4–March6,2025:TheU.S.implementeda25%tariffongoodsfromCanadaandMexicoanddoubleditstariffon

Chinesegoodsto20%.Canadaannouncedretaliatorytariffsof25%onU.S.productsandmaterialssuchasEVs,trucks,

buses,steel,andaluminum.OnMarch6,2025,the25%tariffonCanadianandMexicangoodswasadjustedtoapplyto

goods/productsnotincompliancewiththeUnitedStates-Mexico-CanadaAgreement(USMCA).

Jan.’25Feb.’25Mar.’25Apr.’25May’25

March12,2025:PresidentTrump

reinstatedtariffsof25%onsteeland

aluminumimportsintotheU.S.Canadarespondedwithretaliatorytariffsof

25%onU.S.steelandaluminumgoods/products.

April5,2025:Astandard10%tariffwasappliedtoallcountriesexcept

CanadaandMexicofromtheU.S.,

althoughmanycountriesalreadyhadmuchhighertariffrates(China:34%,

EU:20%,Vietnam:46%,andTaiwan:32%).

May3,2025:TheU.S.

governmentimplemented

tariffsof25%onforeignautocomponentsandparts.

April13–April15,2025:Chinahaltedtheexportofrareearthmineralsandmetals,suchas

samarium,gadolinium,terbium,andothersthat

arecrucialtothemanufacturingofautomobiles

andvariousothergoods.OnApril15th,PresidentTrump’sadministrationdecidedtoincrease

tariffsonallChineseimportstotheU.S.to245%.

AutomotiveOEMsIndexTimeline

5.0%

0.0%

-5.0%

-10.0%

-15.0%

-20.0%

31-Dec-2415-Jan-2530-Jan-2514-Feb-251-Mar-2516-Mar-2531-Mar-2515-Apr-2530-Apr-2515-May-25

Sources:

S&PCapitalIQ,May2025.

5

SamanShafiq,“TranscriptofDonaldTrump’sSpeech:FullTextofTrump’sInauguralAddress,”USAToday,January20,2025.DebbieBoyce,“U.S.AutoTariffs–TimelineandImpactontheAutoRelocationIndustry,”ReindeerLogistics,May5,2025.

“OfficialCBPStatementOnTariffs,”U.S.CustomsandBorderProtection,March8,2025.

GlobalTariffImpacts

ImpactofTariffsontheU.S.AutomotiveIndustry

GlobalAutomotiveProduction

Forecasts3

2025U.S.AutomotiveSales

PricesofNewCars3,18

Estimates3

2025forecastloweredby

1.7million

units,or1.9%

ExpectedtoIncrease$2,000to$10K

2026forecastloweredby

1.9million

units,or2.1%

Loweredfrom16.25millionunitsto

15.40millionunits,down850K(5.2%)

TheintroductionofnewtariffsintotheautomotiveindustryisexpectedtohaveasignificantimpactonbothOEMsandsuppliersintheU.S.Theincreasedcostsassociatedwiththesetariffsisexpectedtoleadtohigherpricesforconsumersamonganalreadyuncertaineconomicbackdropandhigherinflation.ThiscouldaffectU.S.OEMs,as

lowerdemandandhigherinputpriceswillleadtoshrinkingprofitmarginsandfewercashflowsforotheroperating,investing,orfinancingactivities.19Largecapital

investmentsareexpectedtodiminishintheshorttermascompanieswillbehesitanttoreconfiguretheiroperationsbasedonback-and-forthtradenegotiationsand

potentialpolicychangesinthenextadministration.Inthemeantime,U.S.automakersandsuppliersaretakingsomeofthemeasuresbelowtomitigatetheimpactsoftariffsgoingforward:20

1.QuantifyingExposureandDevelopingShort-TermPlans:assessingvulnerabilitytorisinginputcosts

2.ManagingInventoryinHigh-RiskAreas:buildingupinventorytobuytimetoreachfullUSMCAcomplianceandalleviateuncertainty

3.EvaluatingProductionandSourcingPlans:assessingproduction,supplychain,andprocurement,withthepossibilityofchangingsupplychainstrategiesbasedonwhichtariffsareimplemented

4.BolsteringTradeComplianceandReviewingPartnerships:partneringwithotherOEMstomanagecapacityneedsorpotentiallyutilizeaco-productionplatform.(e.g.,FordandVolkswagen).

6

GlobalTariffImpacts

PercentageofVehiclesImportedtotheU.S.22

ImpactsofTariffsontheGlobalAutomotiveIndustry

100%

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

90%

81%80%

Europe:

65%63%

52%51%

46%45%45%

Approximately3.4millionvehicleswereexportedfromGermanyin2024,withtheU.S.beingthetopdestination.Export-dependentcountrieslikeGermanyarefacingincreasinglynegativeimpactsfromglobaltariffs.21

35%

ManyEuropeanautomakershaveresortedtothestrategyofexportingasmany

21%

0%

vehiclestotheU.S.aspossiblebeforethetariffskickin.Thisstrategyofstockpilingexportsisaimedatavoidinghigherduties,atleastforafewmonths.21

Throughnegotiations,theUKgovernmentreducedautotariffsby10%onupto100KBritishcars.21

HighImpactModerateImpactLowImpact

EstimatedTariffImpacttoJapaneseOEMs($inBillions)23

Asia:

$12.0

$10.0

$8.0

$6.0

$4.0

$2.0

$0.0

$10.7

$4.5

$3.0$2.6$2.3

ToyotaHondaNissanSubaruMazda

Japan’sbiggestautomakersarefacingimpactsfromU.S.tariffsthatcouldcostbillionsofdollarstooperatingincome.Manyoftheindustry’stopbrandscut

managementforecastsforthisyearorwithheldguidancealtogether.23

Companiesarescramblingtoshiftoperations:HondahasdelayedplanstoexpandanEVfactoryinCanada,NissanhasstoppedU.S.ordersforSUVsbuiltinMexico,andMazdaisstoppingsomeexportstoCanada.23

InSouthKorea,companiesintheautosupplierandtireindustriesareexploring

operationalchanges,suchasmodifyingproductionplansandupdatingsupply

chainstrategies.SupplierswithaU.S.-basedmanufacturingfootprint,including

HyundaiMobis,HankookTireandKumhoTire,areworkingtoincreaseproductionattheirlocalplants.24

7

AutomotiveLandscapebyGeography

NorthAmericanAutoSalesTrends

U.S.vehiclesalesendedtheyearhigher,finishing2024withnearly15.9millionunitssold,a2%increaseover2023.Improvedinventoryvolumesandhigherincentivesledtosteadynew-vehiclesales.Saleswereespeciallystronginthefourthquarterof2024.AftertheU.S.electionseason,manycustomerspurchasedcarsinNovemberand

Decemberbeforeanypolicychangescouldbeimplemented,suchasarollbackofEVsubsidiesortariffsthatwouldincreaseprices.2

Forecastedsalesfor2025intheU.S.arenowat15.4millionunitsduetotariffimpacts,downfrompreviousestimatesof16.25million.2026estimatesof15.25million

are1.1millionlowerthanapriorforecastof16.35million.Withtariffspossiblyincreasingthecostsofimportedandmanufacturedcars,itwouldbedifficulttopassonthefullcosttocustomers,especiallywithdemandalreadysoftening,negativelyimpactingindustryprofitability.3AfterthecancellationofcertainEVsubsidies,EVgrowthis

expectedtobeimpacted,withEVshareexpectedtoremainaround10%ofnewcarsalesinsteadofgrowinginmarketshare.1

Pickuptrucksonceagainwerethetop-two-sellingvehiclesin2024,despitedeclinesinsalesforboththeFordF-SeriesandtheChevroletSilverado.TheRamPickup

droppedfromthirdplacein2023tofifthin2024afterasalesdeclineofover16%.Tesladoesn’treportsalesfiguresinthesamemannerasotherautomanufacturers,sotheyareexcludedfromthetablebelow.TheTeslaModelYsoldanestimated405,900unitsin2024,whichwouldbethesecond-highest-sellingSUVaftertheToyota

UnitsinMillions

YearlyU.S.VehicleSales

20.0

18.0

16.0

14.0

12.0

10.0

8.0

6.0

4.0

2.0

0.0

17.417.516.4

17.3

17.2

17.0

15.915.415.3

15.6

15.5

15.0

14.7

13.7

RAV4.25

2024U.S.BestsellingVehicles

Model

Make

UnitsSold

Changefrom2023

1.

FordF-Series

732,139

-2.5%

2.ChevroletSilverado

542,517

-2.3%

3.

ToyotaRAV4

475,193

9.3%

4.

HondaCRV

402,791

11.4%

5.

RamPickup

373,120

-16.1%

Sources:

“The25BestsellingCars,Trucks,andSUVsof2024,”CarandDriver,January8,2025.

Alltrademarks,tradenames,orlogosreferencedhereinarethepropertyoftheirrespectiveowners.

Sources:

“U.S.AutoIndustrySalesAnalysis,”GoodCarBadCar,March2024.

8

“CoxAutomotiveForecast:DrivenbyaStrongQ4andaPost-ElectionBoost,U.S.AutoSalesBeatExpectationsin2024,ExpectedtoFinishAbove15.8Million,BestResultSince2019,”CoxAutomotive,January6,2025.

MichaelGauthier,“GoldmanSachsDropsAGrimPredictionForU.S.CarSales,”CarScoops,April10,2025.

AutomotiveLandscapebyGeography

ChineseAutomotiveLandscape

Chineseautomotivesalesgrewto31.4millionunitsin2024,up4.6%from2023.5Afteranexpectedslowstartto2024duetotheLunarNewYearholiday,sales

reboundedinthesecondhalfof2024duetogovernmentstimulusmeasuresandaggressivepromotionsbymanufacturersanddealers.27Salesinthefirstquarterof2025increasedby11.2%comparedtothefirstquarterof2024.5

For2025,autosalesareexpectedtogrowbetween2%and5%.1DespiteasluggishChineseeconomyandweakerunderlyingdemand,EVsalestaxexemptionsandarecentlyincreasedsubsidytrade-inprogramareexpectedtodrivesalesgrowththroughtheendof2025.6ExportsofChinese-madevehiclesareexpectedtogrow6%in2025inspiteoftariffsandincreasingprotectionism.27

TheChineseEVmarketcontinuedtogrowin2024.EVmarketsharedroppedtostarttheyearbutreachedrecordlevelsasEVsoutsoldcombustionenginesinthesecondhalfof2024.EVsreacheda48%marketshareforthefullyear.BEVsalesslowedbutstillmadeupmorethanhalfofEVsales.TotalEVmarketshareis

expectedtobeover50%forthefullyear2025.7InadditiontohelpfromEVtaxexemptionsandgovernmenttrade-inprograms,globalpricesofbatterypackscontinuedtofallin2024,droppingby20%.Withbatterypricesexpectedtofallfurther,EVsmaybecomemoreaffordable.1

60.0%

ChineseMonthlyAutoSales

4.00

EVMonthlyMarketShare

50.0%

3.50

VehiclesinMillions

40.0%

3.00

30.0%

2.50

2.00

20.0%

1.50

10.0%

1.00

0.0%

0.50

0.00

Sources:

ChinaAssociationofAutomobileManufacturers.

9

MonthlyVehicleSalesFour-MonthMovingAverageEVMonthlyMarketShare

“China–AutomotiveSalesVolume,2025,”Marklines,May12,2025.

CleanTechnica.

AutomotiveLandscapebyGeography

EuropeanAutomotiveLandscape

In2024,carregistrationsgrewmodestlyat0.9%to12.96millionnewregistrationsintheEU,EuropeanFreeTradeAssociation(EFTA)andUKcombined,comparedto12.85millionin2023.8Spainhadstrong7.1%growthYoYduetoextensionsofincentivesforEVs.1TheotherthreelargestEUmarketsofGermany,France,andItalyhaddeclinesof1.0%,3.2%and0.5%,respectively.TheUKmarketgrew2.6%in2024onthebackofEVmandates.1,8Inthefirstquarterof2025,totalEuropean

registrationsdeclined0.4%comparedtothefirstquarterof2024,asanuncertainglobaleconomyweighedonconsumersandautomanufacturers.9

TheEuropeanEVmarketimprovedin2024comparedto2023.FortheEU+EFTA+UK,EVmarketshareincreasedto54.1%ofallnewregistrations.HEVscontinueto

bethepreferredelectricchoiceforEuropeancustomerswitha31.4%marketsharein2024,accountingfornearlyallthegrowthinEVmarketshare.Marketshareof

BEVsfellfrom15.7%in2023to15.4%in2024.PHEVsalsosawdecliningmarketsharein2024.8Inthefirstquarterof2025,HEVsandBEVscontinuedtogainshareasthecombinedshareofgasolineanddieselcarsfellto36.5%.9

Fortherestof2025,vehiclesalesareprojectedtogrowjust1%over2024.LowerinterestratesandareboundinEVsalesareexpectedtosupportthelimitedmarketgrowthdespitepoliticaluncertainty,tariffs,andotherpricepressuresformanufacturers.1,6

2024NewCarFuelTypes

EuropeanMonthlyAutoRegistrations

NewRegistrationsinThousands

20.0%

2.5%

7.3%

33.0%

15.4%

31.4%10.4%

1,500

YearOverYearGrowth

11.6%

12.0%10.1%

1,200

10.0%

Gasoline

3.6%

4.1%

Diesel

0.4%

0.1%

900

-2.0%

-2.6%

-2.8%

HybridElectric

-4.2%

0.0%

600

BatteryElectric

Plug-InHybrid

-10.0%

300

-16.5%

Other

0

-20.0%NovDec

2024YoYGrowth

JanFebMarAprMayJunJulAugSepOct

2023Registrations2024Registrations2025Registrations

Source:TheEuropeanAutomobileManufacturers’Association

10

Note:MonthlyregistrationsrepresentnewpassengercarregistrationsintheEU,EFTA,andUK

PublicCompanyTradingStatistics

PublicCompanyEquityPerformance

Overthepasttwoyears,theautomotiveindexesvariedsignificantlyinperformance.AutomotiveMobilitywasthehighestperformer,rising106.9%duetoincreasesinride-sharingcompaniessincethethirdquarterof2023.TheElectricVehiclesindexcloselyfollowedTesla’sstockprice,surgingtoend2024beforedeclininginto2025,endingthetwo-yearperiodup100.0%.TheAutomotiveAftermarketPartsandRepairindex,andtheAutomotiveDealersandAutomotiveOEMsindicesbeattheS&P500overthetwo-yearperiod.TheAutomotiveSuppliersindexwastheonlyindextoendtheperiodinthenegativeatadeclineof15.4%.10

Intheyear-to-date(YTD)periodthatendedMay15,2025,theAutomotiveMobilityindexwasthelargestgainer,up38.3%,aboveAutomotiveAftermarketPartsandRepairat15.0%andAutomotiveSuppliersat3.8%.TheotherindicesendedtheYTDperiodinnegativeterritoryasconsumerconfidencefellamidfearsofnewpriceincreasescausedbytariffs.10,28

YTD2025EquityMarketPerformance

LastTwoYearsEquityMarketPerformance

50.0%

200.0%

38.3%

40.0%

30.0%

150.0%

20.0%

15.0%

106.9%

10.0%

100.0%

100.0%

3.8%

0.6%

(1.1%)

(-2.2%)

(14.8%)

0.0%

-10.0%

50.0%

33.5%

27.1%

5.9%

4.3%

-20.0%

-30.0%

0.0%

(15.4%)

-40.0%

-50.0%

-50.0%

May-25

31-Dec-2430-Jan-251-Mar-2531-Mar-2530-Apr-25

May-23Aug-23Nov-23Feb-24May-24Aug-24Nov-24Feb-25

S&P500AutomotiveAftermarketPartsandRepairAutomotiveSuppliersAutomotiveMobilityAutomotiveOEMsAutomotiveDealersElectricVehicles

11

Note:Representsthemostactivelytradedpublicautomotivesectorcompanies

Source:S&PCapitalIQasofApril30,2025

PublicCompanyTradingStatistics

HistoricalTradingMultiples

TheAutomotiveOEMsaretradingat7.2xlasttwelvemonths(LTM)earningspershare,downapproximately1.0xfromtheirfive-yearmedianprice-to-earnings(P/E)multipleof8.1x.TheAutomotiveAftermarketindexiscurrentlytradingabout2.0xlowerthantheirfive-yearmedianEnterpriseValue/EBITDAmultiple.AutomotiveDealermultipleshaveincreasedinthelasttwoyears,currentlytradingat8.5x,upfrom4.9xin2022and6.6xin2023.AutomotiveSuppliersaretradingbelowtheirfive-yearmedianmultipleof6.1x.10

HistoricalP/EMultiplesSince2020

HistoricalEBITDAMultiplesSince2020

20.0x

20.0x

5-YearMedian:13.7x

16.8x

15.6x

16.0x

14.6x

16.0x

13.7x

13.1x

5-YearMedian:8.1x

5-YearMedian:6.6x

11.7x

11.3x

12.0x

12.0x

5-YearMedian:6.1x

9.8x

8.2x

8.4x8.5x6.6x

7.3x7.2x6.8x

8.1x

8.0x

8.0x

6.7x

6.9x

5.7x

6.1x

5.3x4.9x

4.5x4.4x

4.0x

4.0x

0.0x

0.0x

AutomotiveOEMs

AutomotiveAftermarketAutomotiveDealersAutomotiveSuppliers

FY2019FY2020

FY2021.FY2022FY2023LTMasof5/15/25

Note:MultipleshavebeenadjustedhistoricallytoreflectcorrespondingadjustmentsmadeintheAutomotiveValuationDeckonpages3–7

12

Note:LTM=latesttwelvemonths

Source:S&PCapitalIQasofMay15,2025,andcompanyfilings

M&AActivity

HistoricalM&AActivitybyQuarter

YearlyM&Aactivityintheautomotivesectorhasdeclinedoverthelastfewyears.Asinterestratesincreasedthroughout2022and2023,volumefelltoonly585closeddealsin2023.Withstill-elevatedinterestratesandmarketuncertaintythroughout2024,only508dealswereclosed.ThroughApril2025,only98dealsclosed,on

paceforthelowestM&Avolumeinyears.10

Onaquarterlybasis,activityslowedthroughout2023and2024.Dealactivitywassuppressedbyelevatedinterestrates,globalpoliticaluncertainty,andfallingconsumerdemand.11Inthefirstquarterof2025,only77dealswereclosed,thelowestquarterlyvolumeinoveradecade.10

AutomotiveIndustryYearlyM&A

AutomotiveIndustryQuarterlyM&A

NumberofClosedTransactions

200

300

244

NumberofClosedTransactions

250

215

202

194

185179185

167163168

153

146142

150

123

130124128126112

95

100

77

50

0

900

800

700

600

500

400

300

200

100

0

754769

654

585

565

508

98

201920202021202220232024YTD

2025

Note:Alltransactionsclosedintherespectivetimeperiod

Source:S&PCapitalIQ

13

M&AActivity

NotableIndustryM&ATransactions

KunshanVeritas

MitoyoCo.,Ltd.ChitaKogyoCo.,Ltd.

AutomotiveSystems

Co.,Ltd.

hasbeenacquiredby

hasbeenacquiredby

hasbeenacquiredby

hasbeenacquiredby

hasbeenacquiredby

hasbeenacquiredby

Feb.2025

Mar.2025

Apr.2025

Mar.2025

Apr.2025

Apr.2025

hasbeenacquiredby

hasbeenacquiredby

hasbeenacquiredby

hasbeenacquiredby

hasbeenacquiredby

hasbeenacquiredby

Nov.2024

Oct.2024

Dec.2024

Oct.2024

Oct.2024

Jan.2025

hasbeenacquiredby

hasbeenacquiredby

hasbeenacquiredby

hasbeenacquiredby

hasbeenacquiredby

hasbeenacquiredby

EUROPASOLARS.a.r.l.

Aug.2024

Jul.2024

Jul.2024

Jul.2024

Apr.2024

Sep.2024

14

SolvencyOpinion

AmericanTrailerWorldCorp.,a

portfoliocompanyofBainCapital,LP,hascompletedaleveraged

dividendrecapitalizationtransaction.

SolvencyOpinion

Airxcel,Inc.,aportfoliocompanyofLCatterton,hascompleteda

comprehensivereorganizationtransaction.

SolvencyOpinion

JHTHoldings,Inc.hascompletedaleverageddividendrecapitalizationtransaction.

FinancialadvisortotheboardofdirectorsofJHTHoldings,Inc.

FairnessOpinion

eHiCarServicesLimitedwas

acquiredbyaconsortiumof

investors,includingitschairman;

MBKPartnersFundIV,L.P.;and

BaringPrivateEquityAsiaLimited.

Financialadvisortothespecial

committeeofindependentdirectorsofeHiCarServicesLimited.

FairnessOpinion

SORLAutoParts,Inc.

(NasdaqGM:SORL)hasbeenacquiredbyaninsider-led

consortiuminagoing-privatetransaction.

Financialadvisortothespecial

committeeofindependentdirectorsoftheboardofdirectorsofSORLAuto

Parts,Inc.

SolvencyOpinion

KARAuctionServices,Inc.

(NYSE:KAR)hascompletedthespin-offofIAA,Inc.

FinancialadvisortotheboardofdirectorsofKARAuctionServices,Inc.

SelectKrollAutomotiveTransactionExperience

FairnessOpinion

FenixParts,Inc.hasbeenacquiredbyStellexCapitalManagementLP.

FinancialadvisortotheboardofdirectorsofFenixPartsInc.

FairnessOpinion

DaimlerAG(XTRA:DAI)hassettledtwoarbitrationmatterswiththe

FederalRepublicofGermany

relatedtoitsjointventureinterestinTollCollectGmbH.

Financialadvisortotheboardof

managementofDaimlerAGandDaimlerFinancialServicesAG.

15

FairnessOpinion

JohnsonControlsInc.hassolditsPowerSolutionsbusinessto

BrookfieldBusinessPartnersL.P.

FinancialadvisortotheboardofdirectorsofJohnsonControlsInc.

SolvencyOpinion

Cap-ConAutomotiveTechnologiesLtd.,aportfoliocompanyofThe

JordanCompany,hascompletedaleverageddividendrecapitalizationtransaction.

Financialadvisortotheboard